Seeks to amend Notification No. 11/2017-Central Tax (Rate) dt. 28.06.2017 reducing CGST rate on Maintenance, Repair and Overhaul (MRO) services in respect of aircraft from 18% to 5% with full ITC

Last updated: 26 March 2020

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This notification amends the previous Notification No. 11/2017-Central Tax (Rate) to reduce the CGST rate on Maintenance, Repair, and Overhaul (MRO) services for aircraft. The rate has been decreased from 18% to 5%, and importantly, this comes with full Input Tax Credit (ITC). This change aims to benefit the aviation sector by making MRO services more affordable.

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India

Ministry of Finance

(Department of Revenue)

Notification No. 02/2020- Central Tax (Rate)

New Delhi, the 26 th March, 2020

G.S.R......(E).- In exercise of the powers conferred by sub-section (1), (3) and sub-section (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.11/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 690(E), dated the 28th June, 2017, namely:-

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FAQ :

The main change is the reduction of the Central Goods and Services Tax (CGST) rate on Maintenance, Repair, and Overhaul (MRO) services for aircraft from 18% to 5%.

No, the notification states that the reduction in CGST rate is accompanied by full Input Tax Credit (ITC).

This notification amends Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017.

The services affected are Maintenance, Repair, and Overhaul (MRO) services specifically in respect of aircraft.

Notification No : 02/2020-Central Tax (Rate)
Source : http://www.cbic.gov.in/htdocs-cbec/gst/notfctn-02-2020-cgst-rate-english.pdf

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